The Philippines Bureau of Internal Revenue (BIR) has published Revenue Regulations No. 10/2022 on mutual agreement procedure (MAP) guidelines and process for requesting MAP assistance.
The MAP article in the Double Taxation Agreements or tax treaties of Philippines with other jurisdictions allows the competent authorities of the contracting states to resolve disputes arising from differences or difficulties in the interpretation or application of the tax treaty through mutual agreement. These disputes involve cases of double taxation, juridical and economic, which oftentimes result from inconsistencies in the interpretation and application of treaty provisions and from transactions not conducted at arm’s length.
As per Revenue Regulations No. 10/2022, a taxpayer may, prior to making a formal request for MAP assistance, request for a pre-filing consultation following the procedures outlined below:
- the request for a pre-filing consultation should be addressed to the Chief of ITAD.
- supporting documents shall be attached to such request, when necessary: and
- if so requested, the taxpayer or his authorized representative shall attend and make a presentation of the issues that require competent authority assistance.
The taxpayer shall be informed of the outcome of the pre-filing consultation. If the Chief of ITAD believes that the issues may be resolved through MAP, it shall advise the taxpayer to submit a formal request for MAP assistance.
To request for MAP assistance, a taxpayer must submit a request in writing, which must be signed by the taxpayer or its/his/her authorized representative. The request should include the specific information and documentation and should be submitted to the International Tax Affairs Division office.
